Income-seeking investors can take their cue from NorthWest Healthcare Properties REIT in gauging the strength of real estate investment trusts (reits) in the health care industry.

Growth in the sector is fuelled by a need that is shared by ageing and young populations alike, no matter the geography: lifelong wellness. There is no better validation than dividend yields in the vicinity of 7.5 per cent for NorthWest, which is backed by a portfolio of 142 properties worth more than

C$3 billion (HK$19.3 billion) spread across five of the world’s top health care markets.

“Health care is a fundamental industry that is growing around the world, with emerging areas still coming into their peak demand years. Health care providers – whether insurance companies, hospitals and medical offices or health maintenance organisations – are growing and scaling to this big opportunity and looking to develop best practices. For us, that creates a great opportunity,” says Paul Dalla Lana, CEO.

Health care providers are looking to develop best practices. For us, that creates a great opportunity

Paul Dalla Lana, CEO, NorthWest Healthcare Properties REIT

NorthWest is the only global health care reit listed on the Toronto Stock Exchange. Its portfolio spans 9.5 million sq ft of medical office buildings, clinics and hospitals in Canada, Brazil, Germany, Australia and New Zealand. These are all income-producing properties with long-term indexed leases and stable occupancies involving the leading health care operators in these countries. As a proactive property manager, NorthWest is fully integrated with more than 180 professionals helping health care providers deal with non-core but critical concerns such as cost containment and sustainability.

“The need for growth, efficiency or scaling creates the opportunity, and it is hitting stride,” Dalla Lana says. “NorthWest is in a strong position of being able to accept investors globally, and have a portfolio and scale to be meaningful. At the same time, the company is young enough to have a very exciting growth trajectory. That’s all built on strong industry fundamentals and the reit’s conservative structure.”